Wärtsilä places strategic focus on Ship Power and Service

Wartsila Corporation
  • Stock exchange release
31 July 2003 at 3:01 AM E. Europe Standard Time

Wärtsilä Corporation STOCK EXCHANGE RELEASE 31 July 2003, 8.15 am

Wärtsilä is planning to concentrate its resources more strongly on ship power systems and service. Among other things this will mean starting manufacturing of marine engines and propellers in the growing Chinese market as well as acquisitions aimed at broadening the company’s range of products and services in this sector.

The structure and product portfolio of the Power Plants business will be re-examined and focused.

Revision of the corporate strategy is part of the Group’s development, the aim of which is significantly improve the company's profit generating ability. The Group's targeted operating margin is 7-8%. That is why Wärtsilä will begin to plan a new structure during the coming autumn. It is foreseen that this will also include measures that will further concentrate the Group’s manufacturing capacity.

The order intake of Wärtsilä’s Power Divisions grew during the first six months of the year. The order book at the end of June was at the same level as one year earlier and clearly better than the order book at the end of 2002. The Power Divisions’ net sales and operational profitability in 2003 are expected to be at last year’s levels.

Streamlining measures will be continued and once the plans and evaluations are completed a restructuring provision will be made that will burden the Power Divisions’ result for 2003.

The 1-6/2003 interim report will be released at 8.30 am (local time).


 

Ole Johansson
CEO
Wärtsilä Corporation
Direct tel: +358 10 7095 601
Direct fax:
e-mail:ole.johansson@wartsila.com
Internet: www.wartsila.com